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Please note the choices for this table (Budgeted beginning inventory (units), Budgeted ending inventory (units), & Budgeted unit sales for month) Required information Use the
Please note the choices for this table (Budgeted beginning inventory (units), Budgeted ending inventory (units), & Budgeted unit sales for month)
Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months: April May June July Sales (units) 680 60 710 800 The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 204 units. Assume July's budgeted production is 710 units. In addition, each finished unit requires four pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 845 pounds. Assume direct materials cost $4 per pound Exercise 7-3 Manufacturing: Production budget LO P1 Prepare a production budget for the months of April, May, and June Exercise 7-3 Manufacturing: Production budget LO P1 Prepare a production budget for the months of April, May, and June. RUIZ CO Production Budget For April, May, and June April May June 760 30% 800 Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted unit sales for month Budgeted ending inventory (units) Required units of available production Budgeted ending inventory (units) Units to be produced 710Step by Step Solution
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